Demand for brick and block products is projected to increase 2.2 percent annually to 15.9 billion units in 2012, valued at $7.9 billion. Growth will be greatest in concrete products, reflecting stronger growth in key nonresidential building markets. Demand for clay brick products will benefit from a recovery in residential building activity, especially in new single-family housing, rising from a weak 2007 base. These and other trends, including market share and company profiles, are presented in Brick & Block, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Consumption of clay brick is forecast to increase 1.8 percent annually to 10.8 billion units in 2012, valued at $2.6 billion. Clay brick remains a very popular siding (nonstructural) material, in spite of its initial cost, which is higher than other siding materials. Gains will derive primarily from rebounding opportunities in new residential markets, enhanced by more moderate gains in both residential and nonresidential improvement and repair applications, as well as nonbuilding uses.
Concrete block and brick demand is heavily dependent upon the nonresidential market. Structural concrete block is the dominant product type, accounting for nearly two-thirds of demand in 2007. These products are commonly used as structural wall and foundation materials in both residential and nonresidential markets. Decorative concrete block products, such as split-face block (which has the appearance of cut stone), will post above-average gains, as will concrete pavers, which are available in a wide range of colors and patterns, and are growing in popularity in landscaping uses.
On an application basis, the bulk of demand for brick and block products consists of siding materials and structural products. Smaller applications include chimneywork, paving, sewer construction and landscaping. The fastest growth will be for products used in fencing and other applications (such as paving and landscaping), reflecting increasing nonresidential building activity and a growing emphasis on landscaping and pedestrian thoroughfare paving as an alternative to concrete paving.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.